Comments on: prioritizing debt and expense payments http://www.debtkid.com/prioritizing-debt-and-expense-payments Get Out of Debt @ DebtKid.com Sun, 21 Mar 2010 04:33:43 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: John http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-664 John Thu, 07 Jun 2007 08:24:22 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-664 When I was being crushed in business, I made similar priority lists. Be ruthless and think hard. Grab your spreadsheet by the neck every day and make it work. Cut your costs ruthlessly. Yep, spending priorities and lists like this will not leave your consciousness for the remainder of your business career. here are some priority lists i maintain: 1) cash sufficient to cover all 0% debt - now short $1.7k 2) medical $3k 3) charity $1k 4) 401(k) $15k 5) roth $4k 6) complete the 15% tax rate 7) go sailing that's how priority lists look. ;) When I was being crushed in business, I made similar priority lists. Be ruthless and think hard. Grab your spreadsheet by the neck every day and make it work. Cut your costs ruthlessly. Yep, spending priorities and lists like this will not leave your consciousness for the remainder of your business career. here are some priority lists i maintain:

1) cash sufficient to cover all 0% debt – now short $1.7k
2) medical $3k
3) charity $1k
4) 401(k) $15k
5) roth $4k
6) complete the 15% tax rate
7) go sailing

that’s how priority lists look. ;)

]]> By: hustler http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-663 hustler Thu, 07 Jun 2007 02:47:06 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-663 wow..wow. Man oh man. I like your style. Do what you gotta do with those debts man. wow..wow. Man oh man. I like your style. Do what you gotta do with those debts man.

]]> By: debt kid http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-662 debt kid Thu, 07 Jun 2007 00:18:26 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-662 Alexis...lol. I'm just trying to survive 'til the end of the week! I may post more about my trading days sometime, it might be good to process a bit of why I did those things and how it affected me. We'll see. The thought of writing down some of my experiences there is a bit scary, I'll be honest. So many lies to friends, family, ect...not a happy time in my life. I'm in the middle of two new pretty ambitious projects with my business at the moment, so I need to stay focused on those. They could actually pay the bills! Alexis…lol. I’m just trying to survive ’til the end of the week! I may post more about my trading days sometime, it might be good to process a bit of why I did those things and how it affected me. We’ll see. The thought of writing down some of my experiences there is a bit scary, I’ll be honest. So many lies to friends, family, ect…not a happy time in my life.

I’m in the middle of two new pretty ambitious projects with my business at the moment, so I need to stay focused on those. They could actually pay the bills!

]]> By: ZINTRADI http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-661 ZINTRADI Wed, 06 Jun 2007 23:25:25 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-661 "Might be something to think about." hey, if the Casey "iamfacingforclosureisback.com" serin can get a "book Deal" I bet you could too. “Might be something to think about.”

hey, if the Casey “iamfacingforclosureisback.com” serin can get a “book Deal” I bet you could too.

]]> By: Alexis http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-660 Alexis Wed, 06 Jun 2007 23:06:25 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-660 Have you talked to anyone about a book deal? If you focused it on just the year or two you spent gambling away all that money by day trading it could be really interesting. Add to that the sad tale of you trading away your mom's money - it sounds like quite a story. Might be something to think about. Have you talked to anyone about a book deal? If you focused it on just the year or two you spent gambling away all that money by day trading it could be really interesting. Add to that the sad tale of you trading away your mom’s money – it sounds like quite a story.

Might be something to think about.

]]> By: debt kid http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-659 debt kid Wed, 06 Jun 2007 22:33:19 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-659 Yes, coming up with 7K in cash USED to be easy... (when I went on a credit binge and still had a 700+ fico). Yes, coming up with 7K in cash USED to be easy… (when I went on a credit binge and still had a 700+ fico).

]]> By: Lost Cause http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-658 Lost Cause Wed, 06 Jun 2007 22:29:54 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-658 Well, you, and a fair coin, have some tough decisions to make. Sell the new car, pay late creditors or Mom. So if you take a loss on the car, that is $4k + $3k junker = $7k, not $17k, so $10k wiped out at once. You should be lucky to have such an option. Now you can easily use the car payment to pay your Mom. The only trouble is coming up with $7k cash. Well, you, and a fair coin, have some tough decisions to make. Sell the new car, pay late creditors or Mom. So if you take a loss on the car, that is $4k + $3k junker = $7k, not $17k, so $10k wiped out at once. You should be lucky to have such an option. Now you can easily use the car payment to pay your Mom. The only trouble is coming up with $7k cash.

]]> By: Roger http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-655 Roger Wed, 06 Jun 2007 21:30:16 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-655 Actually, the issue isn't so much with buying a decent car, is the stupidity of buying a new car as opposed to a two or three year old car with 30K miles on it for a fraction of the new price. The rest of that money is simply pride. It's OK if you can afford it, but if you can't that's not a wise investment. Realistically, cars last forever these days. My ten year old Land Rover, hardly the bastion of reliability in the public's mind, has 120K on it and still works fine. A three year old Camry is going to last another 200K. That said, it looks like debtkid is stuck with the one he has. Actually, the issue isn’t so much with buying a decent car, is the stupidity of buying a new car as opposed to a two or three year old car with 30K miles on it for a fraction of the new price. The rest of that money is simply pride. It’s OK if you can afford it, but if you can’t that’s not a wise investment.

Realistically, cars last forever these days. My ten year old Land Rover, hardly the bastion of reliability in the public’s mind, has 120K on it and still works fine. A three year old Camry is going to last another 200K.

That said, it looks like debtkid is stuck with the one he has.

]]> By: Rick http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-653 Rick Wed, 06 Jun 2007 18:30:33 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-653 I personally don't see what the big deal is with the car. I've had experiences before with $1000 cars -- not good. I bought a brand new car a few years ago. I bought it to last. I don't want to have issues with it. I don't want to wake up every morning wondering if I'll be able to get to work today. I don't want to have to spend thousands in maintenance costs because it broke down once again. Also, if debt kid sold his car, that would be an immediate $5000 loss. Yes, he would have a little bit of extra cash, but suffer a loss in his balance sheet. It would have been best if debt kid had purchased a $9000 car instead of a $17000 car, but he can't go back and chagne the past. What's done is done. Looking forward, I agree with him that the best thing is to keep the car. I personally don’t see what the big deal is with the car. I’ve had experiences before with $1000 cars — not good. I bought a brand new car a few years ago. I bought it to last. I don’t want to have issues with it. I don’t want to wake up every morning wondering if I’ll be able to get to work today. I don’t want to have to spend thousands in maintenance costs because it broke down once again.

Also, if debt kid sold his car, that would be an immediate $5000 loss. Yes, he would have a little bit of extra cash, but suffer a loss in his balance sheet.

It would have been best if debt kid had purchased a $9000 car instead of a $17000 car, but he can’t go back and chagne the past. What’s done is done. Looking forward, I agree with him that the best thing is to keep the car.

]]> By: Lu http://www.debtkid.com/prioritizing-debt-and-expense-payments/comment-page-1#comment-651 Lu Wed, 06 Jun 2007 17:54:23 +0000 http://www.debtkid.com/prioritizing-debt-and-expense-payments#comment-651 Having been upside down in a car loan, the one thing I do know is that at least in my state, if you owe money and someone has a lien on your vehicle (in DebtKid's case, Toyota Financial), you can NOT sell the car unless you have enough money to satisfy the lienholder. So he could sell his car for $10K if he found someone to loan him the other $5K to pay off Toyota Financial, and another $1K to buy a beater. I completely agree with Tyler and Kristina, being upside down in a car loan is bad bad bad, but sometimes you have to wait until you are less upside down before you can take care of if. Having been upside down in a car loan, the one thing I do know is that at least in my state, if you owe money and someone has a lien on your vehicle (in DebtKid’s case, Toyota Financial), you can NOT sell the car unless you have enough money to satisfy the lienholder. So he could sell his car for $10K if he found someone to loan him the other $5K to pay off Toyota Financial, and another $1K to buy a beater. I completely agree with Tyler and Kristina, being upside down in a car loan is bad bad bad, but sometimes you have to wait until you are less upside down before you can take care of if.

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